NV Gold closes first tranche of private placement for $616,199

NV Gold Corporation (TSXV:NVX)(OTCQB: NVGLF)(FSE:8NV) completed the first tranche of its non-brokered private placement, raising $616,199 through the issuance of 3,423,330 units at $0.18 per unit.

Each unit consists of one common share and one warrant exercisable at $0.40 per share for 24 months. The company plans to use proceeds for exploration at its Slumber Gold Project and general corporate purposes.

Company insiders purchased 3,190,000 units in the first tranche, constituting a related party transaction. John Watson, the company's President, Chairman and CEO, acquired 3,110,000 units for $559,800, increasing his ownership to approximately 58.65% of outstanding shares on an undiluted basis.

Prior to the transaction, Watson held 10,152,121 common shares, representing approximately 52.9% of the company's issued shares. Following the completion, he controls 13,262,121 common shares plus stock options and warrants.

The securities are subject to a four-month hold period from the date of issuance. No finder's fees were paid in connection with the first tranche.

NV Gold plans to close a second tranche under the same terms in the coming weeks. The transaction requires final approval from the TSX Venture Exchange.

The Vancouver-based exploration company holds 21 projects in Nevada comprising 639 mining claims totaling 53.4 square kilometers. The company has 22.6 million shares issued and outstanding.

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